Roca Adds Acreage in Peru

Roca has acquired working interests in two contiguous hydrocarbon concessions comprising a total of 1.2 million acres (net 1.08 million acres to Roca) in the Ucayali Basin, Republic of Peru.

Concession 1

Roca has acquired a 90% working interest in a 1.2 million acre concession with multiple exploration leads from interpretations of existing two dimensional data and geologic data, including two significant gas prospects with prospective resource potential of one trillion cubic feet or more of natural gas, and 60+ million barrels of condensates. Roca will undertake a four phase exploration and development plan on the concession that includes: 1) geological work including acquisition, processing and interpretation of an additional 358 kilometers of two dimensional seismic data to finalize a drill site and delineate additional leads on the concession, 2) drilling one exploration well and if successful, 3) entering into a full development drilling program on the concession to fully exploit the natural gas and condensate potential and position Roca to, 4) enter into agreements to construct a gas-fired thermoelectric power plant to feed into the Peru Interconnected power grid.

Concession 2

Roca has acquired a 26% working interest in a 19,000 acre oil concession in the Ucayali Basin, Republic of Peru. Two wells are planned during the next 24 months. The first is a confirmation well to test an oil-bearing structure with a reserve potential of approximately 1.0 million barrels. Three prior wells on the structure have determined the presence of oil over a pay zone approximating 12 meters. Roca and its joint venture partner will drill an appraisal well during the latter part of 2011 to confirm oil accumulations in commercial quantities. If successful, Roca would declare a commercial discovery and commence full development drilling and production as early as the second half of 2012. Roca will drill one exploration well on the second target structure on the concession late 2012 or early 2013. This well will test a larger oil prospect with potential resources of up to 16 million barrels, on the same oil trend as the first structure.

Roca's founders, management and geoscientific team possess extensive E&P business start-up, early stage and emerging business development expertise, and Peruvian E&P experience comprising fully qualified environmental practices management, geologic, geophysical and reservoir engineering expertise, and years of extensive Peruvian E&P successes.

Environmental Compliance

Roca has mitigated the complex environmental compliance risks in the Peruvian E&P by securing an environmental team that possesses the technical and environmental expertise and environmental management experience necessary to work successfully within the Peruvian environmental regulatory framework.

Operational Expertise

Roca has joint ventured with a well established Peruvian E&P operator. Roca's joint operations agreements provide Roca the necessary oversights to enable monitoring and auditing all operator activities, while at the same time, relying upon a well established operating entity qualified under the Perupetro established regulatory frameworks attributable to operations in the Peru E&P.

On-the-ground Expertise

Roca possesses extensive on-the-ground expertise in Peru. Roca's team has significant proven successes in Peru, has been directly responsible in developing significant upstream and downstream oil and gas operations in Peru and has been instrumental in creating the entire value chain from hydrocarbon opportunity capture, analysis, discovery, development, production and distribution.

Near Term Cash Flow

Roca's acquisition of its second participation interest puts it at the front of the line of E&P companies with near term potential to declare a commercial discovery. This is due to the fact that Roca's concession has already undergone seismic acquisition and analysis, has already had exploration wells drilled and oil flows to the surface and has environmental permits in place to immediately commence drilling of a confirmation well. If successful, Roca will be positioned to declare a commercial discovery and go into the development phase on the concession, providing near term cash flow as early as 2012.

Long Term Upside

Roca is positioned with one of the most favorable concession locations available in Peru with its first concession interest. Located in the productive Ucayali Basin, the area contains significant anticlinal structures with potential four-way closure culminations along well-defined faults. Nearby are producing oil and gas fields and within the concession area Roca's field geologists have encountered methane-bearing gas seeps. Good reservoir rocks are present in the stratigraphic column with proven producing zones within the main Cretaceous formations. Due to the structure size and an estimated 200 meters of closure, at least two prospects have super field potential where if successful, could potentially prove up reserves of more than 1.0 TCF natural gas, and over 60 million barrels of condensates. A potential natural gas discovery on the concession would provide Roca the opportunity to construct and operate a thermoelectric plant and distribute electricity into the Peru Interconnected power grid and/or to neighboring countries. Roca has commenced discussions with potential electricity generators to develop a preliminary feasibility study of the electricity potential of the overall value proposition that the concession can provide Roca.